I would like to express to you my very real concerns about the way in which the board and management of Compass Resources have misled, concealed and failed in their duty as directors of this company.
I attended the EGM last Thursday (if you can call it that) to vote yes to equitise the HNC and Coffee House loans which would have relieved our company of a substantial part of its debt burden and no doubt ensure a much more robust financial platform to work from, however at the very last minute the company was put into VA, I ask why then was the original trading halt lifted for 1 day, can I suggest so those in the know could sell before the VA?
I found a number of Mr Woods comments alarming to say the least, specifically -
- "that the company stuffed up with the commissioning of the oxide project, although you can't put that in an ASX release"?
- the commissioning was demonstrably erroneous?
- he implied that really the May 08 commissioning announcement could have been just flicking a switch?
- the cobalt/nickel circuit was NEVER tested or piloted and it should have been"
these comments and admissions conflict with prior company releases regarding commissioning and if these views of an independent director were shared at the time they were happening (which they should of in my view under their disclosure obligations) with shareholders, specifically myself I can assure you I would not have invested large sums of money. For nearly 2 years now shareholders have been kept in the dark about what has really gone on, I would love to hear your view on their open and continuous disclosure performance?
I ask you, if Compass's financial position was so desperate and the board and management would have known this, why at the very least were shareholders not asked to help (ie rights issue/cap raising) it seems very strange when they were happy to continue to pay Cornell's in shares for them to turn around and dump them on market and send SP free falling, time after time, perhaps this was the plan so that the 0.42c placement would never go ahead. It certainly gave the impression that creditors were confident (given placement was 3x share price) so investors in good faith got in, only to be pulled the morning of the vote???
Anyway, I don't expect you to comment on my thoughts or opinions but wanted to share with you just one voice of many frustrated and disillusioned shareholders, i hope as you said your mandate is to protect all interested parties (including shareholder).
CMR Price at posting:
15.0¢ Sentiment: None Disclosure: Held
